Original post: The AP just fell for a hoax press
release, which claimed that GE would repay the government the
$3.8 billion tax loss carryforward it received. The hoax was
designed to correspond with last month's controversy originated
by the New York
Times about how GE, despite its huge profits, was paying no
taxes.

The fake press release titled GE Responds to Public Outcry – Will
Donate Entire $3.2 Billion Tax Refund to Help Offset Cuts and
Save American Jobs was posted at a site called
http://www.genewscenters.com/.

It's a pretty sophisticated fake, since genewscenters.com is just
one letter off from genewscenter.com, where GE
actually hosts its news.

Facing criticism over the amount of taxes it pays, General
Electric announced it will repay its entire $3.2 billion tax
refund to the US Treasury on April 18.

GE uses a series of foreign tax havens that the company says are
legal and that led to an enormous refund for the 2010 tax year.

The company earned $11 billion in 2010 on revenue of $150
billion.

The company, based in Fairfield, Conn., plans to phase out tax
havens over 5 years and said it will create one job in the US for
each new job it creates overseas.

Here's the full press release, which OBVIOUSLY reads like a hoax.
Note comments in there about new policies about creating one
American job for every one created abroad.

-------------

Fairfield, CT, 13th April, 2011– GE
CEO Jeffrey Immelt has informed the Obama administration that the
company will be gifting its entire 2010 tax refund, worth $3.2
Billion, to the US Treasury on April 18, Tax Day, and will
furthermore adopt a host of new policies that secure its position
as a leader in corporate social responsibility.

“We want the public to know that we’ve heard them, and that we
know many Americans are going through tough times,” said GE CEO
Jeffrey Immelt. “GE will therefore give our 2010 tax refund back
to the public and allow the public to decide how to spend it.”

Immelt acknowledged no wrongdoing. “All seven of our foreign tax
havens are entirely legal,” Immelt noted. “But Americans have
made it clear that they deplore laws that enable tax avoidance.
While we owe it to our shareholders to use every legal loophole
to maximize returns – we also owe something to the American
people. We didn't write the laws that let us legally avoid paying
taxes. Congress did. But we benefit from those laws, and now we'd
like to share those benefits. We are proud to be giving something
back to America, and we are proud to set an example for all
industry to follow.”

Over the coming weeks, GE will conduct a nationwide survey to
determine how the company's $3.2 billion returned refund is to be
allocated. The survey will be conducted both online and offline,
and will permit the public to weigh in on which of the
recently-enacted budget cuts they would like to see reversed.

In tandem with the gift, the company is also announcing a host of
new policies to restore public faith in the GE brand, including a
commitment to keep American jobs in America, and to create one
U.S. job for each new job created abroad. The ambitious plan will
overhaul accounting systems to allow public transparency and
phase out the use of tax havens in five years. “Given my recent
appointment as President Obama’s Chairman of the Council on Jobs
and Competitiveness, it is no longer appropriate for GE to engage
in practices that, whether by fact or perception, are at odds
with the greater good of the nation," Immelt said.

Immelt outlined several concrete steps he would take to push for
modernized tax policies that reflect the realities of the global
economy. "I will personally ask President Obama to work with
Congress to require country-by-country reporting by
multi-national corporations of the sales made, profits earned and
taxes paid in every jurisdiction where an entity operates.
Instead of moving money via “transfer pricing,” corporations
ought to pay taxes in the jurisdictions where profits are
actually made. If Congress is able to establish standard
industry-wide solutions, GE will close our tax haven operations
abroad, including our subsidiaries in Bermuda, Singapore and
Luxembourg."

Further details on GE’s new policy will be released in the coming
weeks.

About GE
GE (NYSE: GE) is an advanced technology, services and finance
company taking on the world’s toughest challenges. Dedicated to
innovation in energy, health, transportation and infrastructure,
GE operates in more than 100 countries and employs about 300,000
people worldwide. For more information, visit the company's Web
site at www.ge.com.

PRESS CONTACTS

The fake release, which was emailed to the AP, included a GE
logo and a link to a website designed to look like GE's
website. The AP published a 90-word story based on the
release. Thirty-five minutes later, AP withdrew the story and
advised its customers that the story was a hoax.